live from london, this is bbc news. the uk chancellor rachel reeves sets out her new plan for spending, with a promise to invest in security, health and growing the economy. in the spending review, total departmental will grow by 2.3% a year in real terms. compare that to the conservative choice of austerity. la's overnight curfew has just come to an end. police say they carried out mass arrests of those who defied it. 17 officers are injured in a second night of clashes in ballymena in northern ireland following protests over an alleged sexual assault

on a teenage girl. de son's south pole, closer than we have ever seen before. the unremarkable footage disclosing the detail of our closest star. hello, i'm annita mcveigh, and welcome to verified live. it's a hugely significant day here in the uk as the chancellor has set out how tax payers money will be spent by the government until the end of the decade. we'll have lots of analysis over the coming hours, but let's cross straight to my colleague rajini vaidyanathan, who's at westminster. thanks very much. it has been a busy day here in westminster as the uk chancellor rachel reeves delivered her spending review, which essentially sets out what spending is going to go to each government department. that is

until the end of the next decade. it is important to say this is not about tax-raising elements but how the existing funds are going to be distributed and different government departments have come out better than others. let's take you through some of the main points. the chancellor confirmed... the chancellor confirmed total departmental spending will grow by 2.3% over inflation per year. she says spending on the nhs will rise by 3% a year after inflation, and confirmed £39 billion for social and affordable housing. the chancellor also committed to a boost in defence spending, and an end to asylum hotels in the next four years. rachel reeves says she's rejecting "austerity". our first report comes from our political respondent. when will we feel better off, chancellor? rachel reeves leaving downing

street this morning for kabbalah meant the crucial time in part of the country's finances. earlier, cabinet ministers met to see how much money they have departments have been allocated for the coming years, for spending and investment. some have done better than others. trade-offs are unavoidable with limited room for manoeuvre in economic terms. michael the chancellor of the exchequer, rachel reeves. the chancellor set out her plan. we are renewing britain. too many people into many parts of our country i get to feel it. this government's task, my chance, a task as chancellor, and the purpose of this spending review, is to change that. it is to ensure that renewal is about m people's everyday lives, in their jobs and on their high streets. the priorities of this spending review are the priorities of working people.

she is giving day-to-day spending across all departments and above inflation boost. she said she was taking a different approach to that of the tories. an increase of 2.3%, they cut spending by 2.9% a year in 2010. let's be clear, austerity was a destructive choice for the fabric of our society. there are cuts to some departments, including transport and the foreign office, but schools and defence have been given an uplift and the nhs was the big winner. this labour government is making a record cash investment in our health service. we are increasing real terms day-to-day spending by 3% per year for every single year of the spending review. an extra £29 billion per year for the day-to-day running of our health service. the chancellor also set out areas the longer term investment, around £14

billion to build the size of our nuclear power station in suffolk, more than £15 billion on networks in the midlands, eight £6 billion the science and technology sector, and £39 billion towards affordable homes in england. the chancellor is betting that voters and those within her own party who have recently questioned her judgment will be convinced by big numbers on investing for the longer term, in the hope of generating growth over time. there is more spending money on some priority areas that these are a delicate set of decisions that rachel reeves knows well defined what this labour government can do. opposition parties gave their response to the chance to's announcement. this is the spin now, tax later. the right honourable lady know she will need to come back here in the autumn with yet more taxes. and a cruel summer of speculation

awaits. we are still not seeing the scale of ambition needed to turn the country around. we welcome the announcement of investments in the nhs but on its own it will not work unless the government invested in social care as well. rachel reeves and her treasury team are telling us what the state will provide under labour and how much that will cost. the choices that they say marks a news phase of this government. bbc news, westminster. well, in many ways what we heard from the chancellor rachel reeves was not surprising, many of the announcements have been heavily trailed in the weeks and days before. let's break them of it down with our economics correspondent andy verity. things like a boost in defence spending, the nhs, even the home office, not doing as well as other departments. we expected a lot of that, it had already been jailed. what surprises were there, if any?

you had slightly higher terms increase in all departmental spending than we thought there would be. 2.3% was more than most people expected. there were other things like the effect of households of the various changes. i have got the new analysis through which shows that if you are in the bottom half of the income distribution, the bottom half of the population by income, you tend to benefits to the tune of about £1200 a year from the increases into public services. but lost to the tune of about 400 £500 a year from higher taxes or reduced benefits like their withdrawal from some people, at least, of the winter fuel payment. top tent, traditional labour way, they have been hit hardest. it is interesting how traditional labour have been on who they have hit. the treasury's loan model, the wealthiest will benefit from better public

services to about £700 to £750 a year. but they will leave more than £1000 a year due to changes in benefits. there is a lot to get through but we have been looking at questions that the audience wants answers to. i have been casting my eye over them. something people have been searching for today, we want to get it out of the way. a lot of people are asking, what is the spending review? good question. what is the difference between that and a budget and an autumn statement? normally you have two fiscal events where they make spending and tax decisions. there is only supposed to be one now, the budget, which happens in the autumn with tax decisions being made. this is about spending not tax. no decisions to raise or cut taxes. this is about strategy, a long-term view, setting out the government spending plans over the rest of the parliament rather than the coming years. that is the big difference. you

are an economics correspondent, that it is always intertwined. how much of this match is up to what the labour party during the election was promising? it is interesting, certainly they have promised to boost spending in real terms on health and that is what they are doing here. 2.8%. that unfortunately is at the expense of boosting spending on other departments. you are getting an uplift in defence of around 0.7% a year over the next course of parliament, other departments like the department for environment and rural affairs, they see their budgets. that wasn't promised in the manifesto. you constantly have a trade-off between political costs and benefits, economic costs and benefits. the winter fuel payments, that was £1.2 billion to fix it. eventually the government has taken the view that the political class they were playing, the price they were paying, wasn't worth it for the saving they made. it was better to ascend three

quarters of it and make do without £1.2 billion. a lot of their supporters are a lot happier. lets pick up on that. the winter for your u-turn, relatively speaking it was a small amount of money when you look at government budget. let's break down defence and health. are they getting huge boosts? it is a substantial boost to health. it will go up by more than inflation in each of the coming years. yes, it is a substantial boost. compared to what it was in the austerity decade, when health spending went up by 3%, 4% per year, it is actually a bit less. thank you very much for answering questions, basic and complicated. we appreciate it and we'll be back with you in a moment. let's go from economics correspondent to political correspondent, alex forsyth. he is in the building behind me.

alex, tell us what the reaction is from politicians where you are. it is interesting, as you said, a lot of this we knew about in advance because in the week in the to today's spending review, we had that drip, drip of announcements that the government wanted to get out there in the public. investment public transport, investment in that big nuclear programme and the new nuclear plants. and this morning we had about the investment in affordable and social housing. some of the big ticket items in the spending review were out in advance. i think what has developed through the course of the day and after we had rachel reeves gave her speech on her feet in this building, was the story that the government is attempting to tell. we have taken the difficult decisions to allow us to do what we are doing now and we think this is going to make things better. that is really the government's argument. as you are discussing with handy, some of this is about longer term investment in

projects like roads and buildings, that might take a time to come to the russian but the government thinks it is the right approach and will get the economy growing. there are questions about when you really dig into the detail and the day-to-day spending what this means for some government departments and whether some areas of spending are going to be squeezed. and the question about the impact that might have on public services. the conservative's response, now strive was on his... he was saying that the government is borrowing to fund some of the investment spending that it has outlined and raising that question about whether or not there could be tax rises when the chancellor comes back in the autumn for her budget. the big fiscal event of the year. the government hasn't said it is going to put taxes up come the budget but it is the question the conservatives are opposing. i think that will become an attack line from them. i put andy on the spot by going through the questions our

audience are asking in the aftermath of the spending review. i'm going to do the same to you. a lot of people are asking quite simply what is austerity? can you explain to our viewers what it is because we had mel stride talking about austerity, we had the chance are talking about austerity. it is a bit of a political football. it is a term often used to describe a period of time from 2010 onwards when david cameron and george osborne, cast your mind back, prime minister and chancellor, when they came into government and said we have to really rein in public spending. and that did see some areas, particularly areas like local councils, see their budgets cut. that is what is often pointed to as the period of austerity. there has been a question particularly from labour backbench mps about whether or not this government, the labour government, and the choice it was going to make when it came to spending, which effectively amount to another period of austerity where the

government departments the budgets shrink and that therefore had an impact on the public services that people and communities rely on. it was really notable that rachel reeves then have speech today said that austerity was destructive and she wasn't going back there. then she outlined all the areas that this government was spending money on and as andy was explaining, it is right say that overall government spending is going up. but i come back to the point that you have to break it down and dig in the detail, which are a team of experts are doing this afternoon and they will get the details up on the bbc news website. we were really learn about the effect on specific government departments and the consequences for public services. one more for you, how much does this marry up with labour's manifesto policies in them election last year? try this government has said that it is mission driven, to use the lingo of some ministers you

heard about a couple of areas where they are choosing to focus. she repeated time and time again that security, health and economic growth work decisions that were focused on those areas which is why we saw an increase in health spending and defence spending. we saw those decisions he made that the government claims is going to get the economy moving, a real focus for them because they argue that if you do that you end up with more money for public services in the long term. i think that framing is really interesting because we can see now where the government's focus is. it is a simple statement perhaps an obvious one, but it really matters whether it works. only time will tell. thank you very much, alex forsyth, joining us from central lobby. we will be back with alex throughout the course of the afternoon. let's drill

down on one particular area. we talked about defence and health being two of the bigger winners. people, departments have lost out a little bit, the home office for example and the foreign office, who didn't get an increase in their budget. akin to what we saw with the nhs, for example. let's take a closer look at education. i am joined by daniel, general secretary of the national education union. welcome to bbc news. we had a range of announcements, apprenticeships, for example. we had the announcement earlier in the week about free school meals. take us through what you believe are the most significant for education from what we had from the chancellor. we welcome the chance to's decision to extend more free school meals for children. that will make a difference. we are pleased to see £2 billion to be put into

school buildings. and we are heartened to see an end to austerity in education, but it is just a modest increase. we have to be realistic about what the chancellor has committed to in terms of education spending. it is dependent on the obr's protection for inflation and... those have been very turbulent in recent years. but it will return school spending power back to levels when boris johnson left office, not to the 2010 levels that we desperately need to see an education. we still have a very deep crisis in education in terms of recruitment and retention, we have the largest class sizes in europe currently. we are pleased to see an increase in school spending but we still have some concerns about whether it goes far enough considering what we are dealing with in education today. you

talk about recruitment and retention. one announcement from the chancellor, an extra £615 million this year to partially fund a 4% pay rise for teachers in england. schools are expected to fund a quarter of the rise through, i quote, improved productivity. what do you make of that? it is very difficult, after 14 years of conservative austerity, no school or teacher can identify cuts to me made in schools. that is not to say that there are not systemwide efficiencies to be found because of privatisation, these things have been incredibly... we can have a cap on national energy contract, we can move away from supply agencies toward supply pools. these things would be systemwide efficiencies that we can find. school based ones are incredibly difficult. we have noticed around the spending review that funding increases

will be front-loaded so while there is going to be some efficiencies to be found in schools this year, it looks like in 2025, 2027, it will be much better. overall, we are still in a rematch where we need to see much greater investment in education. thank you very much for sharing your thoughts on the area of education. throughout the course of the day we will be taking a closer look at some of the key government departments to see how their spending plans have fared into day's announcement. more crucially, we will get some analysis,

welcome back to our live coverage of the uk chancellor's spending review here in the uk where the government has outlined the choices it has made about where to allocate cash over the next three years. rachel reeves has promised to invest in security, health and growing britain's economy. departments which have stunned really well how do best, the nhs and defence. others like the foreign office and the home office hasn't come out as well. joining me now - paul johnson, director of the institute. for fiscal studies. anyone who follows economics knows that after something like this, this is the post-match analysis you want. they want you and we have got to. your 32nd take. pretty much what we expected. the nhs gets quite a lot, 3% a year, year on year growth. that means there is not much left to share among everyone else. that is why we have got a number of departments, the department of

environment, for example, seeing cuts over the next three years. the schools budget looks pretty tight to me, i have to say. the ministry of defence budget is sticking at 2.5% after 2027. there is going to be pressure to increase that further over that period. what we had to rachel reeves was that the money she is going to spend on capital projects, energy projects, rail projects and so on. a lot of that money is already allocated and quite a lot to come. one thing that i think quite a lot of our viewers want to know. this is not about raising money, it is about allocating the funds that are already there. how much can those funds change according to the political situation globally? for example, we don't know what is happening with the percent in the us and tariffs. could that change the calculations? it certainly

could. there is a lot of uncertainty in the world economy at the moment and the chancellor, she says her own fiscal rules, she says they are ironclad, she won't deviate from them. well, the problem there is that with that level of economic uncertainty and the fact she is barely meeting her rules, by the smallest amount possible to reach them, actually. any change for the negative in the forecast will throw her off course and that will mean that if that happens, in the budget, the only thing they can give is more tax rises. i'm not saying that it is inevitable in any sense but i think there is a 50-50 shot at least that we will get tax rises in the autumn to pay for all of this. terminal could equal tax. government that are increasing and the forecast back in the spring was pretty optimistic. let me ask about something referred to, make sure we've's rules. for those of us who don't live and breathe economics like you, in

30 seconds, what are her fiscal rules? looking for a cheese should be buying i need to invest, she can borrow from the capital project she is talking about but not for day-to-day spending. she is meeting that by the tiniest imaginal margin, any slight change and she starts to miss that. the other rule is that on a particular definition of debts, and a very generous one, debt should be falling at the end of parliament at a fraction of national income. that is very high at the moment, we are paying an enormous amount of interest on that. it is barely falling at the end of the parliament so that is why i say any changes to the economic outlook for the negative and she starts to miss those well. not that much when the manoeuvre. no room for manoeuvre. zero. some people have been talking about the word austerity. we were discussing that with alex forsyth. some people would argue that she is just spending too much. she would argue that

is to boost investment and growth. we are not in a world of austerity, spending went up a lot last year, particularly, and through this year. and she talked a lot about the additional spending over this parliament. but it is worth saying the account of ailing part of that is a lot more borrowing than was in the plans a year ago and also significantly more tax. so this government has decided to focus on the tickly that capital side of spending and they are willing to borrow quite a lot more in order to fund it. paul johnson, thank you very much for taking us through so much very succinctly. very good to have your analysis on a day like this. if you are watching him in the uk... at 5:30pm we'll be joined by a number of experts for a special your voice your bbc to answer any questions questions about the spending review live.

so get in touch by emailing bbcyourvoice@bbc.co.uk or you can whatsapp.

this is bbc news, the headlines... des uk chancellor rachel reeves set out a new plan for spending with a promise to invest in the economy and health. los angeles emerges from a partial curfew. us marines are staged to respond to further protests amid a crackdown. donald trump says america's trade deal with china is done. claiming the relationship between the two countries is excellent. 17 officers are injured in a clash in northern ireland following protests over an alleged sexual assault on a teenage girl. the sun's south pole, closer